SEC Faces Security Breach: Bitcoin ETF Announcement Was Result of SIM Swap Attack

Elon Musk, the owner of X and CEO of Tesla, took the opportunity to refute claims that the SEC hack resulted from X's internal systems being breached. Musk sarcastically commented on the situation, criticizing the media's narrative and suggesting a humorous password for the SEC's account.

SEC Faces Security Breach: Bitcoin ETF Announcement Was Result of SIM Swap Attack

According to the official X Safety team, the recent false Bitcoin ETF approval announcement by the United States Securities and Exchange Commission (SEC) has been attributed to a SIM swap attack. The team’s preliminary investigation revealed that the SEC did not enable two-factor authentication (2FA) on its main account, leaving it vulnerable to hackers.

The security breach, which sent shockwaves through the crypto markets, occurred when an unidentified actor gained control of the phone number associated with the SEC’s official account. Using this access, they were able to infiltrate the SEC’s account on the social media platform, resulting in the false confirmation of a spot Bitcoin ETF. This type of attack, known as a SIM swap hack, involves an attacker taking over a victim’s phone number to gain unauthorized access to various accounts, including social media, bank, and cryptocurrency platforms.

X Safety clarified that the compromise was not a result of any breach in their systems but rather due to the hacker gaining control over the phone number through a third party. They also confirmed that 2FA was not enabled on the compromised SEC account at the time of the incident.

In response to the breach, Senators J.D. Vance and Thom Tillis penned a letter to SEC Chair Gary Gensler, expressing their concerns regarding the agency’s operational security and requesting an explanation within the next four days. They emphasized that this incident undermines the SEC’s mission to protect investors and called for transparency and accountability.

Joining the call for investigation and transparency, several members of Congress have demanded an official probe into the matter. U.S. Senator Bill Hagerty criticized the SEC, highlighting the need for accountability and likening the situation to the agency’s response if the roles were reversed.

Elon Musk, the owner of X and CEO of Tesla, took the opportunity to refute claims that the SEC hack resulted from X’s internal systems being breached. Musk sarcastically commented on the situation, criticizing the media’s narrative and suggesting a humorous password for the SEC’s account.

As the fallout from the security breach continues, it remains crucial for the SEC to strengthen its cybersecurity procedures and address the concerns raised by lawmakers and the crypto community. The incident serves as a stark reminder of the importance of implementing robust security measures, including 2FA, to protect against potential attacks in the digital age.

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